The NJSFDA provides members and consumers with assistance through the Manager of the Day program, which links individuals with questions to association senior staff members. The Manager of the Day is available Monday through Friday from 9:00 a.m. to 5:00 p.m. at 800.734.3712 or by e-mail at: njsfda@njsfda.org. The NJSFDA does NOT provide legal advice, but does offer information on funeral service regulations and law.

New Jersey Prepaid Funeral Trust Fund™ Net Yield

Last Twelve Months:

1.37%

Month of July

1.48%

History

April 15, 1957—New Jersey’s Master Trusting statute becomes effective, requiring that 100% of the proceeds from the sale in advance of need of any and all funeral and cemetery goods and services by any person, firm or corporation be trust funds, with investments limited to insured bank deposits, with principal and interest refundable upon demand. [N.J.S.A. 2A:102-13]

September, 1981—The New Jersey Prepaid Funeral Trust Fund™ (Funeral Planning CHOICES™) is established by the New Jersey State Funeral Directors Association, Inc. (NJSFDA).

January 18, 1992—Limited prepaid funeral trust fund irrevocability is provided for in New Jersey in order to simplify the Medicaid prepaid funeral resource exclusion for persons anticipating Medicaid eligibility within six months, while still providing for portability between funeral homes. [N.J.S.A. 2A:102-16.1]

January 5, 1998—New Jersey State Board of Mortuary Science Rule requires funeral directors to advise the Department of Human Services of refunds in excess of $500 on prepaid funerals that were established using the Medicaid resource exclusion. [N.J.A.C. 13:36-11.6(e)]

February 27, 2000—New Jersey’s mandatory asset recovery law takes effect, requiring the automatic payment of excess proceeds on prepaid funerals that were established using the Medicaid resource exclusion to be forwarded to the Treasurer-State of New Jersey, while codifying in New Jersey law the resource exclusion standards of federal law. [N.J.S.A. 2A:102-20ff ]

November 11, 2003—Excess proceeds from an insurance assignment becomes subject to asset recovery on a going-forward basis. All new assignments require the State of New Jersey to become first named beneficiary following funeral payment.

January, 2007—New Jersey State Medicaid policy advice directs that post-funeral repasts (meals) are not permitted as part of any prepaid funeral arrangement intending to qualify for the Medicaid resource exclusion.